Hunan Aihua Group CoSHSE:603989 -7.71%58 ROA % is 4.51% as of Mar. 2026, which is 52% below its 10-year median of 9.37. GuruFocus rates SHSE:603989 with a GF Score™ of 58/100 and a GF Value™ of ¥18.40 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,505 Hardware companies, Hunan Aihua Group Co ranks better than 64.31% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hunan Aihua Group Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ¥275 Mil.
Hunan Aihua Group Co's average Total Assets over the quarter that ended in Mar. 2026 was ¥6,098 Mil. Therefore, Hunan Aihua Group Co's annualized ROA % for the quarter that ended in Mar. 2026 was 4.51%.
The historical rank and industry rank for Hunan Aihua Group Co's ROA % or its related term are showing as below:
SHSE:603989'
s ROA % Range Over the Past 10 Years
Min: 3.35 Med: 9.37 Max: 12.64
Current: 4.44
During the past 13 years, Hunan Aihua Group Co's highest ROA % was 12.64%. The lowest was 3.35%. And the median was 9.37%.
SHSE:603989's ROA % is ranked better than 64.31% of 2505
companies
in the Hardware industry
Industry Median: 2.28
vs SHSE:603989: 4.44
Hunan Aihua Group Co (SHSE:603989) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Electronic Components subindustry, Hunan Aihua Group Co's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hunan Aihua Group Co ROA % vs Hardware Industry
For the Hardware industry and Technology sector, Hunan Aihua Group Co's ROA % distribution charts can be found below:
* The bar in red indicates where Hunan Aihua Group Co's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Hunan Aihua Group Co (SHSE:603989) has a ROA % of 4.51% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Hunan Aihua Group Co and its competitors. This is 52% below median its historical median of 9.37. Over the past decade, Hunan Aihua Group Co's ROA % has ranged from 3.35 to 12.64. According to the industry distribution chart, Hunan Aihua Group Co ranks #894 out of 2505 companies in the Hardware industry, placing it in the top 35.7%.
Is Hunan Aihua Group Co's ROA % too high?
Hunan Aihua Group Co's current ROA % of 4.51% is 52% below median its 10-year median of 9.37. Over the past 10 years, this metric has ranged from a low of 3.35 to a high of 12.64. The Hardware industry median ROA % is 2.28. Hunan Aihua Group Co's value of 4.51% is 97.8% above this industry median. Based on the distribution chart, Hunan Aihua Group Co ranks #894 out of 2505 companies in the Hardware industry, which is above the industry midpoint. Overall, Hunan Aihua Group Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hunan Aihua Group Co's ROA % compare to APH and GLW?
According to the Hardware industry distribution chart, Hunan Aihua Group Co ranks #894 out of 2505 companies for ROA %. This puts Hunan Aihua Group Co in the upper half of its industry. The industry median ROA % is 2.28. Hunan Aihua Group Co's value of 4.51% is 97.8% above this benchmark. Historically, Hunan Aihua Group Co's own ROA % has ranged from 3.35 to 12.64 over the past decade. While the company's 10-year median is 9.37 vs. the industry median of 2.28, Hunan Aihua Group Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Hardware company?
The median ROA % among Hardware companies is 2.28, based on 2,505 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hunan Aihua Group Co's current ROA % of 4.51% is 97.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Hunan Aihua Group Co and its competitors. For the Hardware industry, the median ROA % is 2.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan Aihua Group Co's current ROA % is 4.51%, which is 52% below median its own 10-year median of 9.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan Aihua Group Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan Aihua Group Co (SHSE:603989) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥18.40, compared to a current price of ¥38.30 — trading 108.2% above its estimated fair value. The current ROA % is 4.51%, which is 52% below median its 10-year median of 9.37 and 97.8% above the Hardware industry median of 2.28. Hunan Aihua Group Co's overall GF Score™ is 58/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Hunan Aihua Group Co (SHSE:603989), the current ROA % is 4.51% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hunan Aihua Group Co (SHSE:603989) Overvalued in 2026?
Based on GuruFocus' analysis, Hunan Aihua Group Co stock appears to be overvalued.
The current stock price of ¥38.30 is trading 108.2% above its estimated GF Value™ of ¥18.40.
GuruFocus considers Hunan Aihua Group Co to be Significantly Overvalued.
Key valuation signals for SHSE:603989:
ROA %: 4.51% (52% below median its 10-year median of 9.37)
GF Value™: ¥18.40 vs. price of ¥38.30 (108.2% above fair value)
Industry Position: 97.8% above the Hardware median (#894 of 2505)
No single metric tells the full story. See the SHSE:603989 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hunan Aihua Group Co Ltd is engaged in the design, development, manufacturing, and sales of aluminium electrolytic capacitors and manufacturing of aluminium foil and machines.
58GF Score
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